Identify the tender sum that the contractor should submit for the project. This should be broken down into the following:
1. Temporary works and site overheads.
2. Costs of supervisory and managerial staff
3. Costs of skilled labour
4. Costs of unskilled labour
5. Costs of construction plant
6. Costs of materials procured locally
7. Costs of imported materials and components
8. Costs of imported equipment
10. Head office overhead costs
11. Profit margin
The above costs should be broken down into a cash flow schedule for each month of the project commencing from the time when the contract was signed through
to the date for commencement on site to the completion date and the date for final settlement.
The above should be compared with the expected cash inflow from the mobilization payment, interim certificates and final payment to form a cumulative cash
All the above should be presented in local currency. Current exchange rates can be computed as for Part II below.
Take account of the following economic changes and revised the expected profit margin and the cash flow schedule:
1. Local inflation
2. Devaluation of the local currency against other currencies
a. Pound Sterling
c. US Dollar
d. South African Rand
3. World interest rates
4. Time and cost escalation
The incidence of inflation, currency fluctuations, interest rates and time and cost escalation will be determined by random numbers. These will be provided
in a table which is below and can be read off the row corresponding to the last two digits on the student registration number.
Which is the row number 87 and all needed file will be attached.
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